BABB Chapter One: How it all started

My name is Rushd Averroes and I am the founder of BABB.

I want to tell you the story of how it all started. It’s the story of why we no longer need to rely on banks, and how we’re going to make it happen. It’s a very personal story, but ultimately it’s about all of us. It begins with a young man in a strange place, shut out and alone. It ends with you, and how you can be part of the new world bank for the global microeconomy.

Here is the first chapter of our story.

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In 2009, I moved from Yemen to the UK. I came here to work and study, so I needed to open a bank account to receive my salary, pay my university fees etc. Because I was an immigrant, new in the UK and without an address, my application was rejected by all of the major UK banks many times. I had to rely on pre-paid cards which were very expensive and not at all convenient. After I finished university I eventually found a part time job and managed to get a basic bank account, but I couldn’t believe how difficult the entire process had been.

As a passionate and successful FX trader, I decided to set up an online money transfer company. It was designed to help immigrants send money home safely and cheaply, cutting out the middlemen. We obtained a money remittance license with the Financial Conduct Authority but one year later, after a successful year of trading, banks in the UK decided to close down the bank accounts of all Money Service Businesses (MSBs). All MSBs in the UK were affected by this unjustified decision, including my company. Most went bankrupt.

It didn’t stop there. My personal account, saving accounts and credit card were all closed at the same time, by Barclays, TSB and Jordan Bank. This was a difficult time for me personally. It was bad enough that I was excluded from the banking system, but it was also an invasion of my privacy. Every time I called one of the banks to try and resolve the issue, I had to disclose all of my personal details. Everyone in the customer service team had access to my data. For the second time in my life, I felt first-hand how much power banks have to exclude people from the system, and I was shocked that they did it so freely.

This decision by banks, to close down the bank accounts of all MSBs, was neither justified nor fair. Closing down bank accounts for these regulated financial institutions had a huge negative impact which rippled out; MSBs were a bridge between immigrants in the UK and their families all over the world. This was financial exclusion on a massive scale, and a demonstration of power by the banks.

Some representatives of the high street banks tried to justify the decision, saying they were trying to prevent criminal activities happening within these businesses. This argument is not valid. Banks should prevent criminal activities by improving their systems: adding extra risk management tools, strengthening KYC and AML procedures, adding modern technologies like biometrics for digital identity and integrating data analysis.

These two experiences have shaped my attitude to banking, and what banking should be. That is why we started BABB. We believe that banking has to be financially inclusive, fair and globally connected. Being a regulated bank, we will share our power rather than hold onto it. BABB will give everyone the chance to become their own bank. We will build the future of banking, and anyone in the world will be able to open a UK bank account. Anyone in the world will have access to banking, regardless of their income, background or nationality. All they need is a smartphone.